7 Best Small Business Accounting Software UK

Small Business Accounting Software

Whether you are a freelancer or a business owner, you need to maintain your books to get a grasp on your finance.

So, it will be better to install one of the best small business accounting software that enables you to handle every aspect of your finance.

Using accounting software, you can easily track all of your costs, and also keep an eye on profit as well as loss. So, you can create a big picture of your financial status. If you are running a small business then you must look for the right package.

There are several packages for the best accounting software for small businesses, you need to look for the most dedicated accounting platform. As it will be more comprehensive and also enhances the workflow.

Take a quick look at these 7 best accounting software for small businesses in the UK.

What is accounting software?

Accounting software is a computer program that will assist you to record and report your business’s financial transactions. At present time, all these software are cloud-based. For a small business, having limited human resources, accounting software is one of the important aspects.

Accounting software is very much a potential aspect for a small firm as it has fewer resources or time to dedicate to proper bookkeeping. Accounting software enables small businesses with automating their bookkeeping process. In simple words, accounting software acts like a digital accountant for any business.

7 Best Small Business Accounting Software UK

The number of accounting software is growing each day. But there are a few dominant ones. It can be difficult for you to choose the best one as each of them comes with its pros and cons. Here, we are discussing the 7 best free accounting software in the UK along with their best features.

#1. QuickBooks:

Small Business Accounting Software

QuickBooks is one of the most popular accounting software in the UK. You can use this software for your business to handle your finance.

It is effortless to use, it enables you to keep tracking your income, taxes, and expenses. You would not find out any better accounting tool for your business.

With its incredible functioning, ease of use, and low cost, most small businesses put their trust in this program.


  • QuickBooks can automate several tasks for you such as making payments, invoicing, and creating financial reports. This software helps you to stay organized and allows you to have some extra time to put in other aspects of the business.
  • It allows you to create various reports about your financial transaction; so you can know how much you are earning, and how much you are spending on what. You can easily acknowledge where your money is going out.
  • You can send invoices to your clients through email, track them, and also collect the payment and electronic signature using this program.


  • Self-employed: £10 per month
  • Simple start: 1 user; £14 per month
  • Essential: 3 users; £24 per month
  • Plus: 5 users; £34 per month
  • Advanced: 25 users; £70 per month

#2. FreshBooks:

Small Business Accounting Software

If you are searching for full-featured invoicing accounting software for your small firm, FreshBooks is the best option. Yes, there is various accounting software that offers invoicing feature but this one is exceptionally user-friendly.

That is why we are rating this software as the best one for small firms. The interface is easier to navigate and in very little time you can personalize the design of the invoice, automate payment reminders, and late fines, and set up recurring invoices.


  • You can easily change the font and color and add your company’s logo to make fully personalized invoices.
  • If you have some clients who always are late to make paying their invoices then you can automatically set up the software to charge them a late fee.
  • You can make recurring invoices, so you don’t need to spend time creating the same invoice every month.


  • Lite: £11 per month; with 5 billable clients
  • Plus: £19 per month; with 50 billable clients
  • Premium: £30 per month; unlimited clients

#3. Xero:

Small Business Accounting Software

Unlike other accounting software that charges according to the number of clients, the subscription of Xero offers its features for unlimited clients.

So, you can add more employees to the account without paying any additional charge. This program enables you to access its incredible functioning with includes estimations, creating a recurring invoice, and inventory monitoring.

You can also upgrade your plan to include credit card processing features and payroll.

Xero offers a 30-day free trial so you can test all the features before deciding to subscribe.


  • This program will automatically import your bills from online banking or email. So, you can see all your expenses in one place. You can also schedule your billing payment, it keeps you at the top of your bills.
  • Xero will provide you with all the business expenses. You can easily add new expenses on this software in one go and this software automatically categorize them for you.
  • If you are running a project-based business, Xero helps you to track your income and expenses. You can create different projects on this platform and track the associated revenue and expenses.


  • Starter: best for a sole trader; £14 per month
  • Standard: most suitable for small business; £28 per month
  • Premium: best for established companies; £36 per month

#4. Zoho Books:

Small Business Accounting Software

Zoho Book is one of the fantastic accounting software for all-size businesses. It comes with various effective functionality. Zoho Books has some more complex capabilities such as project billing, and time tracking.

Additionally, it offers you connectors that allow you to add functionality while the business increases. Zoho Books can be integrated with other Zoho software that includes one of the best CRM software solutions.

It allows you to connect with some other software such as PayPal, and Xero.


  • Zoho Books integrates with Zoho CRM, it will provide you with a complete overview of your clients and their interactions regarding these both programs.
  • It offers recurring templates, so you can automate invoice and bill creation.
  • You can track all your expenses as they attach receipts to each transaction.


  • Free: 1 user and 1 account
  • Standard: 3 users; £12 per month
  • Professional: 5 users; £24 per month
  • Premium: 10 users; £30 per month
  • Elite: £99 per month
  • Ultimate: 15 users; £199 per month

#5. Sage business cloud accounting:

Small Business Accounting Software

Sage business cloud account is a low-cost accounting software with a lot of potential. The entry-level software subscription enables you to create and send invoices, reconcile bank entries automatically, and track payments.

Sage also offers custom invoice templates that allow you to create your invoices to look professional.

With this accounting program, you can manage your inventory, track project time and expenses, and create detailed reports.


  • Sage offers a customized template, so you can create and send professional invoices to your clients.
  • You can keep tracking the bank entries and with the entry-level plan, you can reconcile all the financial transactions automatically.
  • You will get a detailed project report regarding your income, all the expenses, and project time.


  • Entry level plan: £12 per month for 1 user
  • Standard: £26 per month; multiple users
  • Plus: £33 per month; unlimited users

#6. FreeAgent:

Small Business Accounting Software

FreeAgent is an accounting software; it is developed for small entrepreneurs and trades. This program integrates several third-party apps such as Google Drive, and Dropbox.

So, it makes data entry very easier. It is an online accounting tool that comes with the necessary features that are needed to maintain the day-to-day financial records of a small firm. FreeAgent’s Radar sends you personalized alarms on your company’s performance.

This program makes you alert from late payments to cash flow difficulties.


  • It comes with a special feature known as Radar; it facilitates you to keep an eye on your business including intelligent insights, customized suggestions in one location, and trend spotting.
  • This program enables you to track the time on each task, or project so that you can bill your clients appropriately.
  • When you are selling your products or services, you must keep an eye on the sales tax you owe. This program helps you to do that.


  • Universal: for the first 6 months £14.50 and £29 per month thereafter

#7. Wave Accounting:

Small Business Accounting Software

Wave is well known for its excellent features and improvements in the software that makes handling your finances easier for your business.

This accounting software enables you to do many tasks within a shorter period including invoicing, tracking all the financial transactions, and creating the report.

It comes with an in-built payment processing system that lets you accept your customer’s payments.


  • You can create customized invoices that have a professional look.
  • You can track all your financial transactions, so you could easily track where your money is going out.
  • This program gives you an alarm on your invoice dues, and bills.


  • Starting price: Free
  • Free version: yes


Which accounting software is hugely used in the UK?

Ans: QuickBooks is the most popular accounting software that is used hugely in the UK for small trades and firms. This software is designed for small business owners. You can easily create and send invoices, manage projects and clients, track your expenses, and check the report.

What is the most powerful accounting software for small businesses?

Ans: The accounting software market is booming day by day throughout the globe. There is various effective accounting software that is designed to accelerate the growth of the business. The most powerful accounting software is Wave Accounting.


The inability of maintaining financial records is one of the primary reasons for the failure of a business. Bookkeeping and accounting need much effort as well as attention, so many small businesses may find it challenging to cope with it with their traditional commercial activities.

The demand for accounting software is increasing consistently. Accounting software comes with various powerful features with affordable pricing.

So small business owners can successfully focus on their vision while accounting software automates their financial records.

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